'Fungus' Exclusion in All-Risk Policy Includes Mold from Leaks

TAMPA, Fla. - An exclusion for 'fungus' in a church's all-risk policy includes more than ordinary decay and prevents the insured from claiming damages from leaks or faulty construction, a federal judge held Nov. 18 in awarding summary judgment to the insurer. Church of the Palms-Presbyterian (U.S.A.), Inc. v. The Cincinnati Insurance Co., No. 8:04-CV-1513-T-MAP (M.D. Fla.).

Church of the Palms sought coverage from Cincinnati Insurance Co. after discovering mold in one of its buildings. Cincinnati had issued an all-risk policy to the church.

Cincinnati denied the claim, citing an exclusion for 'rust, corrosion, fungus, decay, deterioration, hidden or latent …